[2020 National Audit] "One Store Commission Reduced by 50%... 100 Billion Won Savings Effect"

[Image source=Yonhap News]

[Asia Economy Reporter Buaeri] One Store, a domestic app market, announced on the 8th that "developers have about 100 billion won in cost savings" related to the 50% commission reduction for small and medium app developers.

Lee Jaehwan, CEO of One Store, responded this way to a question from Han Junho, a member of the Democratic Party of Korea, who asked about the background of the commission reduction during the National Assembly Science, Technology, Information and Broadcasting and Communications Committee's audit held that day.

One Store announced that it would reduce commissions by 50% for businesses with monthly transaction amounts of 5 million won or less until the end of 2021.

CEO Lee explained the background of the initiative, saying, "Companies struggling with the recent Google (in-app payment) issue are also facing the COVID-19 pandemic, so this decision was made to protect the domestic industry ecosystem."

He added, "Commissions account for about 30% of operating profit for developers, so the burden is quite significant. The saved amount is being effectively used for overseas expansion, development of follow-up works, employment, and so on. It is regrettable that the reduction amount is not large because One Store's market share is not high."

Regarding the amendment to the Telecommunications Business Act, CEO Lee stated, "For the system to be effective, it must include both punishment or regulation of the abuse of power by dominant market operators and provisions that allow content producers to release their apps on domestic app markets without hesitation."